Amplify Investments Files New XRP ETF Proposal

Amplify Investments has filed a new XRP ETF proposal that provides exposure to the cryptocurrency's price and generates income by selling options. The fund will invest in ETFs that track XRP's spot price and sell call options up to 10% above the current price. Investors will receive income from the premium earned from selling options, but gains are capped at the strike price. Potential risks include general investment risks and XRP-specific risks such as high volatility and network risks.

Amplify Investments has submitted a prospectus to the U.S. Securities and Exchange Commission (SEC) for an XRP Monthly Option Income Exchange-Traded Fund (ETF). The proposed fund aims to balance high income and capital appreciation through exposure to XRP's price return and a covered call strategy [1].

The fund seeks to generate income on a monthly basis by selling call options up to 10% above the current price of XRP. Investors will receive income from the premium earned from selling these options, but gains are capped at the strike price. This strategy allows investors to benefit from the price appreciation of XRP while receiving regular income [1].

The filing comes at a time when the SEC is grappling with a backlog of crypto-related funds awaiting review. As of August 2023, over 90 crypto-related filings or applications were pending SEC review, including spot ETFs tracking various altcoins such as XRP, Litecoin, Dogecoin, and Solana [1].

If approved, this would not be Amplify's first crypto-related ETF. The investment manager has previously issued funds that invest in blockchain technology companies and another fund that generates income through a covered call strategy tied to Bitcoin's price return [1].

Amplify manages $12.6 billion in assets across all its ETFs, according to the company's website. The potential risks associated with the proposed XRP ETF include general investment risks and XRP-specific risks such as high volatility and network risks.

References:
[1] https://www.theblock.co/post/368816/amplify-files-for-xrp-option-income-etf-as-proposals-for-altcoin-based-funds-pile-up?utm_medium=rss&utm_source=rss